Plan · Create · Grow · Buy · Merge · Sell
Advisors to the Recruitment Industry

HHMC_Blog.png

Managed Service Program (MSP) Analysis and Developments

Managed-Service-Program

“Managed Service Program (MSP) suppliers have evolved and offer a wide array of services to clients to support the sourcing of contingent workers as part of a program approach.

“MSP providers are no longer expected to just support supplier management, SOW administration, compliance and pay rolling / billing, but are increasingly offering talent sourcing strategies that support wider business functions as well as look at the total talent landscape in a broader view. This is supported by a growing access to analytics data as well as new opportunities to leverage workers through newer online staffing and Freelance Management Systems (FMS).”

Staffing Industry Analysts (SIA) report “MSP Market Developments 2016” updates the current market size, participants and trends.  With global annual spend exceeding US $100B and growing strongly, all industry participants need to be aware of the MSP environment and why larger corporate organisations are buying these services.

Organizational Changes and MSP Focus

When surveyed, for the majority of buyers, the top six drivers for using MSP services are similar to those that drive Vendor Management System (VMS) adoption, however MSP services are used in addition to VMS products where organizations lack internal capability to support program change and delivery and also look to minimize legal risks:

  • improved compliance
  • cost reduction
  • increased quality and performance
  • support in implementing technology
  • supporting peaks and troughs
  • ability to scale
  • assisting with significant organisational changes

Ability of MSP vendors to address organisational labour

Each of the MSP’s in the market have a particular focus – some on direct sourcing, some have a blended MSP/VMS focus, some are supply chain oriented, and some have an industry vertical or mid-market focus.

The MSP model and the role played by MSP’s will continue to evolve. “Particularly for hard to find resources, SIA sees direct sourcing using Contingent RPO models becoming a more popular approach to acquiring talent in the coming year. Contingent RPO can best be supported where forecasting and workforce planning are actively managed in an organization and for many companies the benefits can be significant.”

Corporate Members

Corporate members can download a copy of the report directly. The report offers a complete summary of the managed service program.

Staffing Industry Analysts

Staffing Industry Analysts is the global advisor on contingent work. Known for its independent and objective insights, the company’s proprietary research, award-winning content, data, support tools, publications, and executive conferences provide a competitive edge to decision-makers who supply and buy temporary staffing. In addition to temporary staffing, Staffing Industry Analysts also covers related staffing sectors.

Staffing companies and their suppliers benefit from personalised intelligence, research, proprietary tools and advisory services from SIA’s expert analysts that are included with Corporate Membership. Corporate members receive legal/regulatory updates, market forecasts, financial/operating benchmarks and briefings on key economic and financial indicators.

For additional information on Corporate Membership and to receive special HHMC membership offers read more here.

Categories: Research

Tags: Strategy, Recruitment, Staffing, Staffing Industry Analysts, Managed Service Program

Picture of Rod Hore

Rod Hore

Rod is a 35-year veteran of Australian and international IT and corporate advisory organisations. His executive-level credentials traverse many segments of the staffing and recruitment industry and include corporate advisory assignments, mergers and acquisitions mandates, and C-level advisory to multinational and other public and private organizations. Located in Perth, Rod founded HHMC to provide local industry acumen and global knowledge to Asia Pacific recruitment agencies. HHMC’s innovative business strategies and well-grounded guidance result in clients realising their personal and corporate goals.

Most Popular Blogs

Posts by Tag

see all